Crypto Predictive Analysis for the Week of May 8, 2022 — Bat Country
Bitcoin and all other crypto are still trending downwards while fear surrounding the global macroeconomic environment escalates. Losses could accelerate as cryptocurrencies appear to breach vital demand zones. Many traders and investors are at a great loss right now. The market fear and greed index is now in extreme fear. The negative sentiment is being fueled by massive liquidation volume, which now sits at almost $300 million
Bitcoin Analysis
The (Bitcoin)BTC price has been falling for the four straight days, piercing the 35000 psychological support level. If sellers sustain this fallout, the potential freefall will pull the coin price to the $33000 support level, suggesting a 4.65% fall. Since the $45000 fallout, the Bitcoin(BTC) price has witnessed aggressive selling from the coin traders, registering a 28% loss. Additionally, the bear cycle has breached the $40000, $37000, and recently $35000 support level. The $40000 breakdown intensified the prevailing market sentiment and plunged the coin by 12.7%. The post retest fall accounted for four consecutive red candles and pulled the coin to its current price at $34641.
On a contrary note, if the buyers revert the price above the $35000 mark, the replenished bullish momentum would rechallenge the $40000. In any event, the BTC price is currently following a range-bound rally, stretching from $33000 to $45000. However, a retest to the previous swing low threatens a fallout possibility.
Bitcoin could dive to $28,060 if it breaches the $32,850 support level.
Technical indicator-
The increasing gap between the MACD and signal line reflects strong selling in the market. The ongoing sell-off in the BTC price faces constant resistance from 20-and-50-day EMA. Furthermore, the coin moving below the 100-and-200-day EMA projects an overall bear market.
The RSI slope showing a comparatively shorter fall indicates a losing bearish momentum. However, the indicator is gradually nearing the oversold region, hinting at a reversal possibility shortly
- Resistance level- $35000, and $40000
- Support level- $33000 and $30000
Ethereum Analysis
A bearish reversal from the new descending trendline on May 4 indicates that the traders continue selling on minor pullbacks. The ongoing correction had recently breached the $2800 support and challenged the lower support level of $2500. Thus, if coin holders lose this support, the Ethereum(ETH) price may plunge to January’s bottom support of $2300. The deflation breaks below the $3000 mark and approaches the next psychological support of $2500. Furthermore, the increasing trend momentum evident by the rise in trading volume over the week, bolster the $2500 fallout.
The short-term correction continues under the influence of a resistance trendline, and the solid demand at $2500 holds a high possibility of a bullish reversal to the trendline. Under ideal bullish conditions, the reversal rally will hit the resistance trendline after surpassing the $2750 mark.
Technical Indicator
The fast-moving downtrend is facing constant resistance from the 20 DMA. Moreover, the recent bearish crossover of the 20 and 100 may promote a $2500 fallout. The expanding gap between the MACD and signal lines accentuates aggressive selling from the traders. However, despite a steady downfall in price action, the daily-RSI following a sideways path indicates weakness in the bearish momentum. This bullish divergence hints at a reversal possibility in upcoming sessions.
- Resistance levels: $2730 and $3000
- Support levels: $2500 and $2300
Altcoin Analysis
Axie Infinity (AXS) Analysis
The Axie Infinity(AXS) price retests the $27 support twice within a fortnight. Moreover, an evident bullish divergence in the daily-RSI indicates the buying pressure at $27, encouraging the formation of a double bottom pattern. The bullish pattern should push the coin price above $35. On May 5th, the AXS price went through a failed attempt to surpass the $35 resistance and plunged back to the $27 mark. However, a second bounce back from this support suggests the traders are quite interested in this dip.
Technical indicator
The daily-RSI slope escaped from the oversold territory and reclaimed the 14-SMA line. The long stretched bullish divergence bolsters the reversal theory from $27 support. However, the trades should look after the 20-and-50-day EMA, aligned with $35 and $45 resistance, respectively. These EMAs strengthen the sellers’ defense and could interfere with the potential rally.
- Resistance levels- $2.65 and $3.3
- Support levels- $27 and $20
Algorand (ALGO) Analysis
Struggling to settle the trend volatility near the $0.66 support zone, the (Algorand)ALGO prices gain bullish influence as the overall crypto market is recovering positively after a sharp fall. But should you consider buying into the bullish rally or wait till the trend settles? If the ALGO price sustained above the $0.68 mark, the trapped sellers would eventually liquidate their holding and bring more buy orders into the market. The rising bullish momentum would drive the altcoin above the $0.8 mark. On a contrary note, the fallout from the $0.66 would threaten the bullish thesis and plunge back to the $0.53 mark.
Technical indicators:
The Daily-RSI indicator chart showed a steeper rally indicating the rising underline bullishness. In addition, the RSI slope surged above the midline, giving additional confirmation for long buyers. The ALGO buyers reclaiming the 20-day SMA indicates an early sign of recovery. However, the 50-day SMA aligned with $0.8 resistance would interrupt a steady recovery.
The MACD indicator shows a bullish crossover but lacks a spread to promote recovery. However, a further increase in bullish spread and crossover above the zero line will indicate a buying spot.
- Resistance levels: $0.78 and $1
- Support levels: $0.66 and $0.54
Fantom (FTM) Analysis
A fresh falling channel pattern drives the Fantom(FTM) price to the ground or below the $1 mark in a less demeaning way. The recent bearish reversal brings the altcoin to $0.70 with an engulfing candle, struggling to continue underneath it. However, till the $0.6 support level stands, a bullish reversal possibility and an opportunity to buy this dip remain on the card. The bearish pattern forming within the more significant trend reflects an astonishing increase in the downtrend momentum. Additionally, the intraday trading volume has increased over the past week, reflecting the increased interest in the token in the market.
The FTM holders bring lower price rejection around the $0.70 mark following the bearish candle pattern, reflecting the entry of new buyers to block the downtrend. But, traders desiring a reversal need to wait until the uprise undermines the bearish candle and closes above $0.85. On the lower side, a further increase in selling pressure will drive the trend below the $0.70 support level to the next support at $0.66.
Technical indicator
The declining Bollinger band indicator accentuates an overall bear market. Moreover, the coin price struggles to surpass the indicator’s midline, suggesting aggressive selling from traders. However, the daily-RSI slope shows an evident bullish divergence concerning the April 30th retest to the $0.65 support. This divergence indicates the coin price faces strong buying pressure at this support.
- Resistance levels- $1 and $1.25
- Support levels- $0.64-$0.6 and $0.41
Conclusion
A single wallet has dumped a massive 285 million UST onto Curve and Binance, resulting in massive outflows that caused UST to briefly depeg. Bitcoin’s drop to $35,000 aggravated the fears of most traders and investors on the crypto market as more market participants left the space for a better time. The negative sentiment is being fueled by massive liquidation volume, which now sits at almost $300 million. The value locked in decentralized finance (defi) protocols has lost 17.77% over the last 30 days, falling from $221.67 billion to today’s $182.27 billion. Moreover, statistics show the total value locked (TVL) across a broad range of defi protocols shed significant value during the last seven days.
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A former professional rugby player, Adam S. Tracy brings over twenty years’ experience as an attorney, consultant and dealmaker with a particular focus on cryptocurrency, digital products, payments and immersive corporate structures. As an accomplished executive and advisor to blockchain merchants and stakeholders, Adam has proven himself as a results oriented, decisive leader with proven success advising early market entrants, technology adapters, as well as established participants across a wide range of blockchain verticals. Adam Tracy’s attack-first personality allows him to excel in dynamic, demanding environments including complex corporate negotiations, distressed environments and regulatory investigations.
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